Self Employment Tax

by Ryan
(Louisiana )

I work for a church and I have the 15.3% withheld every check. I use turbo tax to file my taxes. Do I need to pay the self employment tax when filing my taxes?

vickey's reply

Not sure I understand your question.

Are you saying the church is withholding and matching your SS and Medicare taxes?

Are you an ordained minister?

According to the IRS’s Publication 517: Social Security and Other Information for Members of the Clergy and Religious Workers. Social security and Medicare taxes are collected under two systems. Under the Self-Employment Contributions Act (SECA), the self-employed person pays all the taxes. Under the Insurance Contributions Act (FICA), the employee and the employer each pay half of the taxes.

If you are an ordained minister, your church should not be holding and matching FICA tax. Your earnings for the services you perform in your capacity as a minister are subject to SE tax unless you have requested and received an exemption.

If this is the case you may want to consult a CPA before filing your taxes.